New perspectives on construction supply chain integration

In 1998, a government‐sponsored review of the UK construction sector called for the adoption of initiatives from manufacturing industry in order to increase productivity and reduce costs. Subsequent research has focused on how supply chain management practices could be implemented effectively by clients, consultants and large contracting organisations. However, little attention has been paid to the integration of small and medium‐size enterprises (SMEs) in the subcontractor and material supply sectors. This paper presents the findings of research that focused on the role of these SMEs in re‐engineered construction supply chains. It was found that significant barriers exist to supplier integration within the construction sector, which stem from SME scepticism over the motives behind supply chain management practices. It is suggested that the industry must make greater efforts to extol the mutual benefits of supplier integration to SMEs if significant performance improvement is to be achieved.